India’s interim trade framework with the United States is set to bring cheer for premium motorcycle enthusiasts.
Under the first phase of the India-US trade agreement, New Delhi will grant zero import duty to American motorcycle makers for bikes with engine capacities between 800cc and 1,600cc.
The move directly benefits brands like Harley-Davidson and is expected to make these high-end motorcycles more affordable for Indian buyers from the day the agreement comes into effect.
What the trade deal says about big bikes
Government sources have indicated that motorcycles falling in the 800-1,600cc category will enjoy zero tariffs immediately after the deal is implemented.
This marks a sharp shift from last year’s duty structure, when import tax on motorcycles up to 1,600cc was reduced from 50 percent to 40 percent.
The new decision effectively removes that duty altogether for this premium segment and signals a significant policy shift aimed at strengthening bilateral trade ties.
Why Harley-Davidson stands to gain the most
Harley-Davidson’s popular motorcycles, including the Iron 883 and several other heavyweight cruisers, fall within this engine capacity bracket.
The brand has long struggled to find a strong foothold in India because of high import duties that made its bikes far more expensive than in other markets.
The zero-duty provision is expected to improve pricing and boost demand. The issue of high tariffs on Harley bikes had also been repeatedly flagged by US President Donald Trump as a trade concern, making this development diplomatically significant as well.
Will this affect Indian manufacturers?
Officials maintain that the impact on domestic manufacturers will be minimal because India’s market for high-end premium motorcycles remains relatively small.
Most Indian two-wheeler makers operate in the mass and mid-segment categories, while American brands hold only a tiny share of the overall motorcycle market.
Moreover, Hero MotoCorp’s partnership with Harley-Davidson since 2020 places the Indian company in a favourable position, as it already develops, sells, and distributes Harley products and merchandise across India.
Part of a larger trade balancing exercise
The decision on motorcycles is part of a wider interim trade framework between the two countries. Under the agreement, the United States will reduce tariffs on Indian goods to 18 percent from the earlier 50 percent.
In return, India is offering zero-tariff access to select US goods in sectors where domestic production is limited or quality standards need to be met. The first phase of the trade pact is expected to be signed by mid-March.
What about cars and electric vehicles?
While premium motorcycles receive immediate relief, high-end internal combustion engine cars with engine capacities above 3,000cc will see tariffs gradually fall to 30 percent over a ten-year period. Electric vehicles, however, are excluded from these concessions in order to protect India’s rapidly growing EV ecosystem and investments made under the Production-Linked Incentive scheme.
This ensures that domestic EV manufacturers continue to receive policy support without facing foreign competition in the near term.
Indian bike buyers take a look!
For motorcycle enthusiasts in India, this development could lead to noticeably lower prices for Harley-Davidson bikes once the agreement is operational.
The removal of import duty addresses one of the biggest cost barriers that previously kept these motorcycles out of reach for many buyers. As the trade deal moves toward implementation, owning a Harley-Davidson in India may soon become far more attainable than before.
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Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
